Bursting the Bubble

Tag Archives: EMU

The Politics of the ECB

19 December 2016 | by

The European Central Bank (ECB) is the central bank for the euro and administers the monetary policy of the eurozone, which consists of 19 EU member states and is one of the largest currency areas in the world. It is one of the world’s most important central banks and is one of the seven institutions […]

Is the Banking Union strong enough to avert the next economic crisis?

14 December 2015 | by

At the heart of the Economic and Monetary Union lies a fundamental contradiction. On the one hand, the EMU requires considerable integration of policies at euro zone level, and a high degree of economic discipline at the national level. On the other hand, most people of the euro zone do not want to be ruled […]

Dovish ECB does not deliver what was expected

9 December 2015 | by

When a country joins a monetary union, it gives up its monetary policy stance that is tailored to its needs, i.e. the level of interest rates and money supply that is appropriate for its economy. The resulting common policy is a one-size-fits-all policy. Booming regions, with high inflation, have the lowest interest rate in the […]